™ can help. We are expert bookkeepers that can help your small business with its bookkeeping needs. Here’s a short explanation of what Contra Account means. If we can be of more help explaining what Contra Account is or if we can help you with any of your small business bookkeeping needs, give us a call at 888-552-6657(888-55Books)™ provides a way for small businesses to have outsourced bookkeeping at a significant savings. We provide our clients with pre-printed envelopes. You stuff the envelopes and our expert team does the rest with detailed reports and timely compliance support. Not to mention, you now have a team of experts at your disposal should you have questions or last-minute needs. Let’s start with answering what Contra Account means:

A contra account is always related to an asset or liability account on the balance sheet.

It is used to offset the amount of the principle account.

A common contra account is accumulated depreciation. This account is used to keep track of the total depreciation related to an asset account.

As such, the bookkeeper is able to keep the original cost in the asset account and sum all depreciation in this specific contra account. The net value of the asset is the difference between the account and the contra account.

Need more information or help? Don’t hesitate to give us a call right now at 888-55Books.

All initial consultations are free. Call a Helpful Human today!”[Back to Accounting Terms]